Federal Reserve Chairman Jerome Powell said that virtual currencies will not be banned in the United States. Bitcoin has risen fiercely, reaching a maximum of $56,000.

During China's 7-day National Day holiday, Bitcoin led the way of increasing both in trading volumes and prices, with the highest point breaking through US$ 56,000, and once again reached a trillion market value.

Since September 30, the price of Bitcoin has risen steadily, from U.S. dollars 41,532 to $ 56,123. It is currently oscillating upward at around 55,300 U.S. dollars, with a daily increase of nearly 10%. According to data from Assetdash, the market value of Bitcoin once again surpassed US$1 trillion in a few months, surpassing Facebook to rank sixth in the world's total market value, and the total market value of all the crypto market also exceeded US$2.3 trillion.

In addition, according to the Bitcoin Fear and Greed Index, the greed index on October 8 was 74. The market has turned from the previous panic to greed, and the market is in a state of excitement.

According to data from the Bitcoin Home Network, Bitcoin liquidation reached US$164 million in the past 24 hours. In the last 24 hours, a total of 60,129 people liquidated their positions, reaching the highest level in the past ten days.

Regarding this rise, analyst Rekt Capital pointed out: “Historically, BTC tends to obtain an average monthly positive return of 32% in October. In October of this year, BTC has rebounded by 29%, and this is only this month. In the first week of this month, it may rise to a high of $63,000 at the end of this month, regaining lost ground."

Since September 24, the Central Bank, together with ten ministries and commissions including the People’s Bank of China, the Central Cyberspace Administration of China, the Supreme Court, the Supreme Procuratorate, the Ministry of Industry and Information Technology, the Ministry of Public Security, the General Administration of Supervision, the China Banking and Insurance Regulatory Commission, the Securities Regulatory Commission, and the Foreign Exchange Bureau, jointly issued the "About Since the Notice on Further Preventing and Disposing of the Risks of Virtual Currency Trading Hype (hereinafter referred to as the "Notice"), Bitcoin and other virtual currencies have been in a relatively sluggish market. The cumulative increase of more than 13,000 US dollars in recent days has really surprised the market.

According to previous reports from China Times, the "Notice" conveyed unprecedented pressure measures against the virtual currency industry, including making it clear that virtual currency and related business attributes are illegal financial activities, and practitioners may be involved in illegal activities; strengthen the risk of virtual currency transaction speculation Monitoring and early warning, tracking and backup of "mining", transaction and other information; establishing a multi-dimensional, multi-level risk prevention and disposal system, etc., has caused the virtual currency in mainland China to suffer a fatal blow.

This reporter learned that in just one week, more than 30 virtual currency-related companies announced that they would cease operations in mainland China, and they have moved abroad, and even social platform exchange groups have all been transferred to Telegram.

Regarding the People’s Bank of China’s continuous crackdown on virtual currencies, Fan Yifei, deputy governor of the People’s Bank of China, explained at the State Council’s policy briefing previously held that private currencies, including so-called "stable coins" and Bitcoin, have themselves become speculative tools. , There are potential risks that threaten financial security and social stability. At the same time, it has also become a payment tool for some money laundering and illegal economic activities. The so-called "stable currencies" of some commercial organizations, especially the global "stable currencies", may bring risks and challenges to the international monetary system and payment and settlement system.

An industry insider told reporters: “Under the background of the unstable global economy, the relatively tense global economic situation has also made the central bank’s risk management and control of financial security under high-pressure supervision. “China’s economic operation is generally stable and stable. The development trend' can guarantee the security of the national financial market to the greatest extent."

"In the case of boots running out of profit, the still strong crypto market is the main background. The fuse of this rise is the Fed Chairman Jerome Powell's statement that virtual currencies will not be banned in the United States; the other is the Federal Reserve Minnesota Several speeches by Neil Kashkari, Chairman and Chief Executive Officer of the Apolis Federal Reserve Bank, including “This year’s surge in U.S. inflation was caused by the pandemic-related supply disruption, and the Fed does not need to respond” and “Expected in 2024. The former Federal Reserve will not raise interest rates' etc. In addition, it is also very important that the rise in inflation expectations is also one of the long-term backgrounds for the encryption industry to maintain a relatively prosperous industry.” The above-mentioned industry insiders explained.

This reporter noted that inflation expectations in the United States and Europe have been rising. According to a report released by the U.S. Department of Commerce on October 1, due to supply chain disruption and strong demand, August inflation experienced the largest increase in 30 years; and in August the euro zone year The inflation rate was confirmed to be 3.0%, the highest level since November 2011 and well above the European Central Bank’s target of 2.0%.

Nikolaos Panigirtzoglou, a cross-asset strategist at JPMorgan Chase, pointed out: “The growth of Bitcoin price is a healthy development because it is more likely to reflect the involvement of institutions in the cryptocurrency market than other currencies with a smaller market value. Institutional investors I think Bitcoin may be a better hedge against inflation than gold."

In addition, Nikolaos Panigirtzoglou further pointed out that the main reason for the increase in the price of Bitcoin is that US policymakers have recently assured that they have no intention to follow other countries’ measures to prohibit the use or mining of cryptocurrencies; investors’ concerns about inflation have reappeared, Bitcoin The attractiveness of currency as an inflation hedging tool may have increased. Recently, the price of gold has failed to respond to increased inflation concerns and behaved more like a product that reflects real interest rates than an inflation hedging tool.

The market value of Bitcoin once again surpassed one trillion. Although its volume is still insignificant compared to the gold market of about 10 trillion US dollars and the traditional bond and stock markets, its impact on financial security and international political and economic security is still insignificant. The threat is rising further.